STATE OF THE RAINFOREST 2014
82
The illegal trade in natural resources is a growing global concern
that threatens the environment, human well-being, security and
sustainable development. A recent report by UNEP estimates that
the monetary value of all transnational organized environmental
crime is between USD 70 and 213 billion annually.
48
The higher
figure is nearly double that of the global Official Development
Assistance of about USD 135 billion. Environmental crime includes
illegal logging, poaching and trafficking of animals, illegal
fisheries, illegal mining and illegal dumping of toxic waste. Out
of these five key areas within environmental crime, forest crime
(including illegal logging and processing) has by far the largest
losses in revenue. The annual value of forest crime is an estimated
USD 30–100 billion, equivalent to 10–30% of the total value of the
global timber trade.
49
Forest crime impacts negatively on the social security, environmental
resources and economy of affected countries. The illegal trade in
timber per definition operates outside of government regulations
andmanagement, thusdepriving thenational economyof significant
revenues.
50
Tanzania reportedly lost USD 58 million in 2004–2005
due to unpaid timber royalties.
51
Criminal organisations undermine
the rule of law, weaken government enforcement functions and
spread corruption within the military and amongst politicians.
52
Deforestation deprives local communities of their resource base,
especially indigenous peoples who solely depend on forests for
their livelihood.
53
Local communities are further harmed by criminal
groups through corruption of officials, fraud, money laundering,
extortion, threats of violence and murder.
54
The majority of illegal logging takes place in the tropical forest of the
Amazon, Central Africa and Southeast Asia. Recent studies reveal that
illegal logging accounts for as much as 50–90%of the total production
from some of the key tropical forest countries.
55
The US, EU, China and
Japan receive over 80% of all illegally logged wood globally.
56
The four most common forms of illegal trade of forest products are:
illegal exploitation of high-valued wood species such as rosewood
and mahogany; illegal logging of timber for sawn wood, building
materials and furniture; illegal logging and laundering of wood
through plantation and agricultural front companies to supply pulp
for the paper industry; and utilisation of the unregulated wood-
fuel and charcoal trade to conceal illegal logging in and outside
protected areas, and conduct tax evasion and fraud.
57
Forest crimes are conducted in numerous ways. Primary methods
of illegal logging and timber laundering include the falsi cation
of logging permits; bribing forest officials, police and the military
in order to obtain logging permits; logging beyond concessions;
hacking government websites to obtain permits for higher volumes
or transport; or by establishing roads, ranches, palm oil plantations
or forest plantations, and mix illegal timber with the legal timber
during transport or in mills.
58
Laundering illegal timber and wood products – the process of
transforming illegally logged timber into ostensibly legal logs – is
the most common way that illegal logs are transported, processed,
exported and manufactured.
59
By doing so, timber or wood products
avoid certification schemes and other established efforts to fight
illegal imports. Some plantations are established simply to cover up
for logging, and are declared bankrupt after clearing. This method
gives companies access to governmental subsidies, legal permits to
sell timber and opportunities for extensive tax fraud. In Indonesia
the amount of timber logged through plantations increased from 3.7
to 22.3 million m
3
from 2000 to 2008. The fact that only a fraction of
these established plantations are operational indicates large-scale
laundering of illegally logged wood.
60
While the focus on illegal tropical wood has primarily been on
roundwood, sawn wood and furniture products, findings reveal
that that the largest share enters countries as paper, pulp or wood
chips. An estimate suggests that between 62–86% of all illegal
tropical wood imported to the US and EU comes in these forms.
61
Amongst all wood products, it is hardest to determine origin – and
hence detect if it’s from an illegal source – of paper and pulp. While
the origin of roundwood is fairly easy to detect, it takes scientific
analysis of fiber samples to identify the source of pulp and paper,
creating favourable conditions for illegalities with high profits and
low risks.
62
A paper from an EU-based producer may very well derive
from a conflict zone in Africa.
63
Forest crime in Africa, especially the illegal and unregulated charcoal
trade, has close ties to organized crime, militias and terrorist groups.
64
A growing demand for wood charcoal due to a rapidly growing urban
population, and the absence of regulation is an open invitation for
non-state armed groups to take control of the trade. An estimate
suggests that the illegal charcoal trade alone causes a loss of
USD 1.9 billion in revenues to African countries annually.
65
Armed
groups across Africa create income through controlling and claiming
taxes along roads, ports, strategic trade points and border crossings.
At a roadblock in the Lower Juba Region, Al Shabaab has been able
to make up to USD 8–18 million annually from taxation of charcoal
trucks.
66
The illegal trade and export of charcoal from Somalia has
an estimated value of between USD 360 and 384 million per year.
67
Militants in DRC are estimated to make USD 14–50 million annually
on road taxes.
68
For African countries with ongoing conflict, including
Mali, the Central African Republic, DR Congo, Sudan and Somalia,
Forest crime
By Hanne Jørstad, based on the UNEP-INTERPOL report: “The Environmental Crime Crisis”;
Editors Christian Nellemann, Rune Henriksen, Patricia Raxter, Neville Ash and Elizabeth Mrema
